CCPTCamden Property Trust

Camden Property Trust rents apartments in southern cities people move to for work and weather.

Population inflows lift demand, but building there is easy: permits are granted, land is cheaper, and new supply appears quickly in response. A wave of completions halts rent growth for a time, and that is exactly what such a trust's cycle consists of.

The portfolio is spread across many cities so that a local glut does not decide the result, and the properties sit in the middle and upper segments, where tenants withstand rent increases better. The trust form obliges distributing profit. Risks: the volume of new construction, coastal insurance, property taxes and sensitivity to interest rates.